Company Number: 13016597

Analysis Date: 2025-07-20 18:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by negative net assets and increasing creditor balances extending beyond one year, indicating material long-term liabilities exceeding assets. The working capital position is consistently negative, raising liquidity concerns.

2. Key Concerns:

• Persistent negative net assets worsening from -£1,340 (2023) to -£6,809 (2024), indicating erosion of shareholder equity.
• Current liabilities and long-term creditors substantially exceed current assets, with net current liabilities improving but still negative (-£173 in 2024), suggesting ongoing cash flow strain.
• The company operates in real estate with high fixed asset values (£364,857) but appears heavily leveraged, which may impact operational stability if rental income or asset values decline.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, showing regulatory adherence.
• Directors appear stable with no noted disqualifications or adverse records; ownership is evenly split between two directors, suggesting clear control.
• The company has maintained fixed assets at a consistent value across years, indicating asset stability.

4. Due Diligence Notes:

• Investigate nature and terms of long-term creditors (£371,493 in 2024) to assess refinancing risk and repayment schedule.
• Review cash flow statements and rental income streams to evaluate operational cash generation versus liabilities.
• Confirm valuation and marketability of fixed assets to understand potential for asset disposals or revaluation.
• Assess management plans for addressing negative equity and improving liquidity, including any capital injection or restructuring.
• Consider any off-balance sheet liabilities or contingent risks not disclosed in micro-entity accounts.